NI Act: Whether Section 143A Has Retrospective Application: SC Reserves Judgment

The Supreme Court in the future might give a definitive answer to the question as to whether Section 143A of the NI Act has Retrospective Application or not.

A division bench consisting of Justice Uday Umesh Lalit and Justice Vineet Saran concluded the hearing of a Special Leave Petition against a Madras High Court order on the issue of Section 143A Negotiable Instruments Act. The bench has reserved the same for judgement.

The Fast Track Court -II, Metropolitan Magistrate , Chennai had earlier directed the accused to pay the 20% of the cheques amount as interim compensation payable to the de-facto complainant. The issue of retrospection under Section 143A NI Act is not seen addressed in the High Court order that upheld the Magistrate’s direction. However, the High Court upheld the order by modifying interim compensation to 15% of each cheque amounts to the complainant.